General Electric company history and business operations

General Electric

Jack Watson

In 1878 Thomas Edison founded the Edison Electric Light Company which through mergers and acquisitions became General Electric (GE). The 19th and 20th centuries watched Edison's company grow into a massive multi-national company with branches reaching into a vast number of businesses. In the years since its formation GE has become a global leader in a number of fields beyond the power generation functions that Edison had pioneered. Industries as varied as aircraft engines and financial services have both become staples of income for the multi-faceted organization. With all of the success that GE has enjoyed it appears that the company is destined for a bright future and yet, there are significant issues that must be understood and managed for GE to be a bright star throughout the next two centuries.

GE's Industry

Attempting to place GE into a specific industry category is a difficult proposition that will most likely prove unsuccessful. GE is like many other mega-conglomerates that seem to engage in the most diverse industries. Ultimately, the focus of the company is not restricted to any one particular business but instead is aimed at developing products and services that improve the overall quality of life. Pearce and Robinson explain that GE is dedicated

"To carry on a diversified, growing, and profitable worldwide manufacturing business in electrical apparatus, appliances, and supplies, and in related materials, products, systems, and services for industry, commerce, agriculture, government, the community, and the home." (1994, p. 109)

From technology to media and financial services, GE has left its mark on industries that include medical imaging, plastics and television programming.

GE has operations around the globe in more than 100 countries. These operations are managed and staffed by more than 300,000 employees who range from scientists to doctors to janitors.

"General Electric Company (GE) conducts its businesses through 11 segments: Advanced Materials ... Healthcare, Infrastructure, Insurance ... Its products include major appliances, lighting products, industrial automation products ... locomotives ... chemicals and engineered materials." ("General Electric Co," 2005, Profile section)

The employees that work these sectors are part of an organization that has a seemingly boundless appetite for varied industries and looks constantly for economies of scale that can be gained through acquisitions and mergers. "On May 11, 2004, GE completed the merger of NBC with Vivendi Universal Entertainment LLLP." ("General Electric Co," 2005, Profile section) These continued efforts indicate that GE is not turning away from the patterns that have contributed so significantly to its success.

GE's Current and Future Influence on the Industry

The footprint of any massive multi-national conglomeration is significant but GE's footprint seems to be magnified. From shaping the relations with labor unions to influencing the way in which governments interact with business, GE has created benchmarks and set precedent for many of the industries in which it operates. However, GE has not been limited to simply helping to establish policy. General Electric has been an active participant in Free Trade efforts that have made a significant impact on developing nations. The company has also been instrumental in helping to set standards for the environmental stewardship that multi-nationals must accept in the modern day global village.

The influence of GE on the future relations between business and government or between business and the environment will most likely continue in the same direction that GE has followed. It appears likely that GE will look to explore better and cheaper ways of manufacturing which will undoubtedly influence the labor markets in developed nations. However, with the strides the company will make to outsource low-skill jobs, it is clear that their efforts to increase the number of high-tech or high-skill jobs will continue concomitant to that effort.

GE's Key Technologies

Again, it is difficult to narrowly define the key technologies of a company with such broad business activities as GE but for the purpose of this paper it is helpful to identify three major technologies that promise burgeoning growth and significant change. Broadcasting equipment, jet propulsion and power generation equipment all possess the qualities of having a substantial influence and may help to shape the future. GE not only engages in broadcasting but has shown significant innovation in technology and delivery methods for broadcast transmissions. The jet propulsion work being done by GE is helping to redefine how travel takes place and what resources are required to make various journeys possible. But perhaps the most significant technology the company is responsible for relates to the generation of power. The world is facing a fossil fuel famine and GE's efforts may be the lynch-pin in bridging the way to the new method of power generation.

GE SWOT Analysis

Strengths

General Electric is replete with strengths. From market share domination to innovation to global relationships, GE has a significant repository of strengths which promise to help keep the company viable. Company leadership is keenly aware of the significance of the company's breadth and has instituted methods to evaluate business venture strengths rather than examining the company only as a whole unit. Each General Electric "business is rated in terms of two major dimensions, market attractiveness and business strength." (Kotler, 1994, p. 72) This acknowledgement of diversity is also a major strength.

Weaknesses

Every organization has some weaknesses and GE is no exception. Such a massive company necessarily invites redundancy, waste and inefficiency. Beyond those issues is the challenge of being nimble and quick to change to meet a growing need. Finally, the company engages in research that involves nuclear power development, jet fuel and chemicals which could cause the company environmental liabilities which could prove not just significant to wildlife but could damage the company's image.

Opportunities

The developing markets around the world provide a feast of opportunity for a company such as GE. Inexpensive labor and cheap land signal great opportunities for GE not just for the growth of the company but in terms of creating customers to whom the company can sell its products. GE's awareness and sensitivity toward global trends also provides opportunities to increase market share. "General Electric Company's extensive global mission provided the foundation for its GE Appliances (GEA) in Louisville, Kentucky, to grow in spite of the 1990-92 recession ... its expansion goals allowed for flexibility in examining the unique characteristics of individual foreign markets and tailoring strategies to fit them." (Pearce and Robinson, 1994, p. 36)